CZ denies Binance ever traded on BitMEX or booked 60,000 BTC in hedge profits during the March 2020 crash, calling the viral allegation “fake news” and technically impossible.
Summary
- CZ responds to a viral post alleging Binance hedged client flow on BitMEX for over 60,000 BTC in profit during the March 2020 “Covid crash,” dismissing it as fabricated “fake news”.
- He stresses that Binance “never traded on BitMex” and points to the exchange’s once‑daily withdrawal schedule at the time as a practical barrier to real‑time hedging of that size.
- Commentators and BitMEX itself say there are no records of such flows, framing the debate as another example of rumor‑driven FUD and how old anecdotes morph into conspiracy narratives.
Binance founder Changpeng “CZ” Zhao has moved to quash fresh allegations that the exchange secretly booked more than 60,000 BTC in profits by hedging client risk on BitMEX during the March 2020 crash, dismissing the claim as “fake news” and emblematic of the rumor‑driven warfare that still defines much of crypto trading culture.
CZ pushes back on BitMEX hedge narrative
Responding to a viral post from Flood, CEO of fullstack_trade on Hyperliquid, CZ said the allegation that Binance hedged flow on BitMEX for over 60,000 BTC in profit during the Covid‑era liquidation cascade was entirely fabricated. “4. Fake news. They just making things up randomly now. Not sure what their goal is. I feel bad for the people believing this without seeing any proof,” he wrote, adding bluntly that “Binance never traded on BitMex.” Zhao tagged BitMEX co‑founder Arthur Hayes to underline a key operational constraint at the time, noting that “BitMex processes withdrawals only once a day,” a structure that would have made real‑time risk‑hedging of that magnitude effectively impossible.
BitMEX and traders call claim “impossible”
Market participants quickly weighed in to deconstruct the 60,000 BTC storyline. “Exactly. BitMEX’s once-a-day withdrawal window back in 2020 made it impossible for an exchange to use it for a real-time hedge of that size,” commentator Murtuza J. Merchant argued, stressing that “no entity would trap 60,000 BTC in a manual multi-sig during a black swan crash.” He suggested the “60k figure is likely just a garbled memory of old” market anecdotes rather than a verifiable trade record. BitMEX itself has since confirmed that it has no records supporting the alleged flows and pointed to its upgrade from once‑daily batched withdrawals to real‑time payouts as part of broader infrastructure changes since 2020.
FUD, Binance’s legacy, and market context
Not everyone accepted the “fake news” framing. One critic, posting under the handle Broly, countered that “Binance has had a major role in every major downfall of crypto,” citing the exchange’s role in the FTX collapse, its backing of LUNA before withdrawals were halted, and its influence around other major dislocations. The episode has been widely mocked as yet another round of competitive FUD, but it also underscores how opaque cross‑exchange flows, historical grievances, and incomplete memories can quickly harden into conspiracy narratives in a market that still trades on screenshots and hearsay as often as audited disclosures.
Market prices and further reading
This parabolic move comes as digital assets continue to trade as the purest expression of macro risk appetite. Bitcoin (BTC) is hovering around $68,280, with a recent 24‑hour range between roughly $64,760 and $71,450. Ethereum (ETH) is trading near the low‑$2,000 band, with prediction markets clustering key levels between about $1,940 and $2,100 over the near term. Solana (SOL) changes hands around $78–81, roughly flat on the session after a modest pullback from recent highs.
